How To Pay for a Car Out of State

You’ve found the right car, but it’s far away. In the past, paying for an out-of-state car was filled with risk, friction, and potential failure points, but not anymore. Don’t let distance derail your car purchase.

Sure, you could mail a check or have a courier deliver physical cash. But why overcomplicate payment when you can finish the deal over the phone? DealNow streamlines remote, long-distance car payments and provides you with the tools you need to buy a car quickly and securely, no matter where it’s at.

Before we show you how DealNow simplifies car payments, let’s look at why most payment methods fall short and the other problems that typically kill long-distance purchases.

Most Payment Methods Can’t Go the Distance

Physical cash, cashier’s checks, and bank transfers are common payment methods for high-dollar items. While they all have drawbacks, they are relatively effective ways to pay when you’re buying a car locally. Once you throw distance into the equation, their downsides add significant delays and security risks to the transaction process.

Should I Pay With Physical Cash?

For lower-priced motorcycles, cash is a fine way to pay. When purchasing an entry-level bike or a used motorcycle for a few thousand dollars, physical cash is simple and immediate. The transaction can be completed on the spot without relying on technology or financial institutions.

When it comes to more expensive motorcycles, paying with physical cash presents some challenges:

  • Counting: Verifying large sums of money in person can be time-consuming and error-prone.
  • Authenticity concerns: For significant amounts, the seller will want to carefully examine each bill, extending the transaction time.
  • Security risk: Physical cash can be lost, destroyed, or stolen.

The safest way to pay for a motorcycle in cash is to meet the seller at your bank, withdraw the money on the spot, and have a bank teller count and verify the bills to speed things up.

Physical Cash

People are innately comfortable with physical cash due to its long history. In an average car transaction, you’d withdraw the money, count it, let the seller count and verify it, and then finish the deal. For a long-distance transaction, you’re stuck traveling with a bunch of cash or paying a courier to ship it for you. Neither option is safe or convenient.

Cashier’s Checks

Cashier’s checks are a convenient alternative to physical cash; instead of a wad of bills, you carry a check. Sellers like cashier’s checks because the funds are backed by the bank so they can’t bounce. If you traveled to finish the deal, you’d still need to coordinate around banking hours so the seller could verify the check. If you want to pay remotely, you’d have to ship the check and wait for it to arrive to continue the transaction. A lost check, a holiday, or a weekend will add extra costs and unnecessary time to the transaction.

Wire Transfers

Wire transfers let you pay the seller without physically exchanging anything. You go to your bank, give them the seller’s account information, and the bank handles the rest. Wire transfers take about a day to process, but once the seller has received verification they can continue the sale knowing they’ll be paid.

Sellers might rightfully be uncomfortable providing their bank account information to a stranger from another state. Scammers who target car sellers use this information for identity theft. Besides sharing information, wire transfers are only available during business hours and are not as fast or user-friendly as modern digital payment apps. For long-distance purchases, you have to coordinate between time zones and gain the seller’s trust.

Other Payment Methods

You have a few more payment options, but they’re pretty bad for high-dollar car purchases—even worse at a distance:

  • Credit cards: High processing fees, technological barriers, and a low seller acceptance rate due to chargebacks make credit cards a terrible way to pay for a car.
  • Cryptocurrency: Unpredictable price volatility, complex setup and usage requirements, and a steep learning curve make crypto an unattractive payment that could cost you thousands of dollars in price fluctuations.
  • Digital payment platforms: Paypal has high processing fees, and Venmo, Cash App, and Zelle have low transaction limits. While instant and secure, these platforms weren’t made to facilitate high-dollar private-party transactions.
  • Money orders and personal checks: Both are risky for sellers and have no upside compared to cashier’s checks.

Pain Points in Long-Distance Car Transactions

Payment is just one of many challenges buyers used to face during long-distance car purchases. Those who attempted the process needed to overcome these obstacles:

  • Identity concerns: It’s difficult to verify the seller’s identity or confirm they own the vehicle. Traditional listing sites don’t verify sellers, leaving you vulnerable to scams that target car buyers.
  • Complex communication: You’re coordinating between the seller, your inspector, your bank, a transport company, and possibly a storage facility. Each party needs different information at different times. More parties mean more chances for miscommunication and delay.
  • Banking hours and time zone differences: Most car payment methods only work during banking hours. If the inspector checks the car at 6 PM or on a weekend, you’re stuck waiting to complete the transaction.
  • Inspector coordination: You can hire someone to inspect the car and act as your agent, but they’d need to wait around while payments clear and paperwork is processed, which could take hours or days.
  • The trust catch-22: You don’t want to pay without assurance you’ll get the car, and the seller doesn’t want to release the title without getting paid. It’s challenging enough to trust a stranger in person. Distance makes it worse.
  • Paperwork delays: Titles, bills of sale, registration documents, and proof of insurance must be handled correctly. Doing this long-distance traditionally meant relying on mail or escrow services—adding days or weeks to the process.
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Each of these obstacles can kill a deal on its own. Combined, they’ve made long-distance car purchases nearly impossible—until now.

DealNow Simplifies Remote Car Purchases

DealNow is the best way to pay for an out-of-state car because it’s so much more than a payment method. Enjoy a complete transactional workflow that takes the friction out of long-distance car transactions and lets you finish the deal from your mobile device.

Fast, Easy Purchases

Before DealNow, car purchases took hours or days. Remote deals took even longer. Now, with instant payments and a real-time self-serve dealflow, you can complete the buying process in minutes.

Your Inspector Doubles as Your Agent

Because payment happens instantly, your on-site inspector can act as your proxy from pre-purchase inspection through transport. They inspect the vehicle and communicate with you by phone. If you’re satisfied with the vehicle, you can pay immediately, and they’ll handle the title transfer and shipping coordination.

Buyer-Seller Verification

You and the seller show proof of identity during account creation. You know from the start that you’re dealing with a seller acting under their legal name. Then, our in-app VIN check and vehicle history report confirm the car’s current owner, previous owners, service records, title status, and condition. This weeds out most scammers who target car buyers.

Easy Scheduling, Shipping, and Tracking

Book inspections and shop affordable vehicle transport options from your DealNow dashboard. Your inspector can coordinate directly with the car transport company, and you can follow everything in real-time. Once the deal is done, your inspector can hand the vehicle to the shipping company or coordinate pickup.

Solve the Trust Catch-22 With a Digital Bill of Sale

Both parties sign a legally binding bill of sale in the DealNow app. The seller knows they’ll get paid for the car; you know you’ll get the car. No more catch-22. You’ll receive a notification when the seller has signed so you can pay for the car with confidence.

The DealNow Difference

Long-distance car purchases used to be so complex, that people turned to expensive escrow services to help with the process. You don’t need an escrow to buy a car anymore. Each part of the DealNow platform coordinates to make long-distance deals happen.

Here’s what DealNow looks like in action: A buyer in Florida purchased a $80,000 Porsche in New York—sight unseen. The buyer handled the entire transaction after breakfast on a Saturday. The inspector verified everything, the payment was transferred instantly, and the inspector coordinated with the shipping company to get the car on the road. The whole deal wrapped up in about an hour.

DealNow turns what used to be a frustratingly complex process into something you can do from your phone, anytime, anywhere.

The Long-Distance Car Buying Process With DealNow

Let’s walk through exactly how DealNow works for remote, out-of-state car transactions.

  1. Find and verify: Find a car in your price range, and invite the seller to your DealNow dealroom with a custom link. Use our in-app title check and vehicle history report features to research the car.
  2. Get eyes on the ground: Choose an inspector from our network and pick a time from the seller’s pre-arranged availability to schedule the inspection and test drive. The inspector will communicate with you in real-time so you can ask questions and get a better look at the car.
  3. Complete the transaction: You and the seller sign digital bills of sale. Once you receive the notification that the seller has signed, you can send an instant payment of any amount. Your inspector handles the change of ownership.
  4. Coordinate shipping: Purchase an auto shipping company directly through the app, and let your inspector arrange the pick-up.

What used to take days or weeks now happens in minutes. You’re not just using a payment app or a car listing site—you’re choosing a complete transaction platform that makes the long-distance purchase process quick and safe.

Out-of-State Payments FAQ

Why do people buy out-of-state vehicles?

Several compelling reasons make crossing state lines worthwhile:

  • Better price range: Find identical vehicles for thousands of dollars less in different markets where they’re more common or less desired.
  • Vehicle availability: Some types of vehicles are more available in certain regions—convertibles in warm states, 4x4s in mountainous areas, or rare limited editions in specific markets.
  • Climate benefits: Buyers from snowy states often seek vehicles from warm, dry climates to avoid rust damage, especially for expensive vehicles.
  • Market advantages: Major metro areas offer more attractive deals and variety. Even with shipping costs, buyers often save money by shopping where selection is better.

With DealNow’s platform, the logistics of out-of-state purchases are simpler than ever. Find your dream car anywhere, and finish with DealNow.

Contact your insurance agent before buying. Most states require proof of auto insurance before you can register the vehicle. Your agent can help you understand insurance requirements and set up coverage that starts the moment you take ownership. They can also explain if you need additional insurance for transport.

If you’re interested in a new insurance company, you can shop our third-party partners directly from the DealNow app.

After purchasing an out-of-state car, you will pay the same fees you would if you purchased a car in your home state, but depending on where you live, you might have a few more expenses. Expect to pay:

  • Registration fees and license plate fees in your home state
  • Auto sales tax (varies by state)
  • Emissions test certificates if required
  • Temporary insurance during transit
  • Safety inspection fees if necessary

Many states have strict emissions testing standards. California, for example, has rigorous requirements. Check your state’s Department of Motor Vehicles website for specific emissions testing requirements before purchasing. Some states won’t allow registration of vehicles that don’t meet their standards, even if the car is legal in other states.

If you purchase an out-of-state car and plan to drive it home, you’ll need a temporary registration. Visit your state’s Department of Motor Vehicles website to apply for temporary registration. You’ll need:

  • Proof of identity
  • Vehicle identification number (VIN)
  • Bill of sale
  • Proof of insurance
  • Payment

The safest payment option is DealNow’s secure payment platform. DealNow provides instant, verified transfers with no limits, unlike wire transfers or checks. The buyer’s funds are securely held in FDIC-insured accounts and instantly released upon completion of the sale, protecting buyers and sellers throughout the transaction.

Most states require you to pay sales tax on motor vehicle purchases. Besides sales tax, there aren’t any other tax implications when buying a car.

Here’s what you need to know about tax implications for vehicle purchases in a general sense. 

  • Sales tax: Your state wants their cut—usually 4–7% of what you paid. You’ll handle this at the DMV when you register.
  • Sales tax exemptions: Some states skip the tax for family transfers or if you’re a qualifying organization (religious groups, government entities, etc.). Check your state’s rules—you might dodge this bullet.
  • No income tax: A private-party transaction is not taxable income, so no income taxes are owed.
  • No gift taxes: Even gifting the car to someone later does not generally incur gift taxes unless it’s a very expensive luxury vehicle. Individual state rules differ.

Buying private-party cars for sale isn’t just faster than buying from an auto dealer—it’s also cheaper. Here’s why:

  • Better purchase prices: Whether you’re eyeing a pristine new model or a fixer-upper, private sales typically mean lower sales prices.
  • No dealer fees: Skip those pesky documentation charges that can equate to hundreds of dollars.
  • Skip the middleman: Dealerships buy low and sell high. With private sales, you’re cutting out that profit margin.
  • More choices: From barely-driven luxury cars to well-loved classics, private sellers offer a range of options.

Bottom line? Private sales let you stretch your car-buying dollar further.

A mismatch between the VIN on the car and the vehicle title requires immediate attention. It could be a simple error or indicate potential fraud or criminal activity.

Start with Kelley Blue Book to understand fair market value. Check online marketplaces to compare similar cars in your area, and factor in the car’s condition and any modifications to determine what you’re willing to pay.

Professional vehicle inspections are necessary. Have a certified mechanic check the engine, transmission, frame, and electrical systems. They can spot hidden problems that could save you thousands in future repairs.

A vehicle history report shows ownership changes, service records, and accidents. Be wary of shady sellers who won’t share this information or if the number of previous owners seems inconsistent with the car’s age.

If you can’t view the vehicle in person immediately, don’t just rely on photos. Have a professional inspector act as your eyes on the ground. DealNow can arrange local inspections and even coordinate test drives with verified inspectors. Plus, we handle secure payment and bills of sale once you’re ready to buy.

Never share your social security number or other sensitive details with private sellers. Professional scammers might charm you into a false sense of security that leads to careless information sharing. Use DealNow’s secure platform to protect your private data while verifying both parties’ identities.

Financial institutions rarely refund money lost to scams. Unlike fraud, where someone uses your account without permission, scams involve you authorizing the transaction. Always use secure payment methods such as DealNow to protect yourself when buying a car.

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